Editing Network effect (section)

==Negative network externalities==
{{See also|Negative feedback}}
Negative network externalities, in the mathematical sense, are those that have a negative effect compared to normal (positive) network effects. Just as positive network externalities (network effects) cause [[positive feedback]] and [[exponential growth]], negative network externalities are also caused by positive feedback resulting in [[exponential decay]].<ref>{{Cite book|first1=Carl|last1=Shapiro|first2=Hal R.|last2=Varian|date=1999|title=Information Rules|publisher=Harvard Business School Press}}</ref> Negative network effect must not be confused with negative feedback.<ref>{{Cite book |first1=Harald |last1=Øverby |first2=Jan A. |last2=Audestad |date=2021 |title=Introduction to Digital Economics |publisher=Springer |isbn=978-3-030-78237-5}}</ref> Negative feedback is the forces that pull towards equilibrium and are responsible for stability.

{{Non sequitur|date=December 2023|post-text=(see [[Talk:Network effect#Unclear formulation in section Negative network externalities|talk]])|reason=It is not clear how this sentence fits into the rest of the section and article.|text=Besides, Negative network externalities has four characteristics, which are namely, more login retries, longer query times, longer download times and more download attempts.}}<ref>{{Cite journal|last1=Asvanund|first1=Atip|last2=Clay|first2=Karen|last3=Krishnan|first3=Ramayya|last4=Smith|first4=Michael D.|date=June 2004|title=An Empirical Analysis of Network Externalities in Peer-to-Peer Music-Sharing Networks|url=http://pubsonline.informs.org/doi/abs/10.1287/isre.1040.0020|journal=Information Systems Research|language=en|volume=15|issue=2|pages=155–174|doi=10.1287/isre.1040.0020|issn=1047-7047|access-date=2020-10-30|archive-date=2020-01-23|archive-url=https://web.archive.org/web/20200123013801/https://pubsonline.informs.org/doi/abs/10.1287/isre.1040.0020|url-status=live}}</ref> Therefore, congestion occurs when the efficiency of a network decreases as more people use it, and this reduces the value to people already using it. [[Traffic congestion]] that overloads the freeway and [[network congestion]] on connections with limited bandwidth both display negative network externalities.<ref>{{Cite journal|last1=Zhang|first1=Mengyuan|last2=Yang|first2=Lei|last3=Gong|first3=Xiaowen|last4=He|first4=Shibo|last5=Zhang|first5=Junshan|date=August 2018|title=Wireless Service Pricing Competition Under Network Effect, Congestion Effect, and Bounded Rationality|url=https://ieeexplore.ieee.org/document/8331097|journal=IEEE Transactions on Vehicular Technology|volume=67|issue=8|pages=7497–7507|doi=10.1109/TVT.2018.2822843|s2cid=52003270|issn=0018-9545}}</ref>

[[Braess's paradox]] suggests that adding paths through a network can have a negative effect on performance of the network.<ref>{{cite web |last1=Lin |first1=Henry |last2=Roughgarden |first2=Tim |last3=Tardos |first3=Éva |last4=Walkover |first4=Asher |title=Stronger Bounds on Braess's Paradox and the Maximum Latency of Selfish Routing |url=http://theory.stanford.edu/~tim/papers/mcbp.pdf |website=Stanford Theory |publisher=Society for Industrial and Applied Mathematics |access-date=16 September 2014 |archive-date=25 January 2015 |archive-url=https://web.archive.org/web/20150125041819/http://theory.stanford.edu/~tim/papers/mcbp.pdf |url-status=live }}</ref>